The LCMS teaches that salvation is by grace alone through faith alone in Christ alone (sola gratia, sola fide, solus Christus). Salvation encompasses justification before God, which is entirely God's work and not dependent on human merit, cooperation, or works. The Holy Spirit works faith in the heart of the sinner through the Word of God and the sacraments, particularly baptism.

Unlike Reformed theology, the LCMS affirms baptismal regeneration—that water baptism, when administered with God's Word, actually imparts forgiveness of sins and new life. Infant baptism is practiced, and baptized children are considered regenerate and members of the church body. However, faith must be active and living; bare baptism without faith does not secure final salvation.

The LCMS teaches that apostasy is possible—a baptized Christian can fall from faith and lose salvation through willful rejection of Christ. The doctrine of 'once saved, always saved' (unconditional eternal security) is rejected. Final perseverance depends on remaining in faith and in the body of Christ, though this perseverance is sustained by God's grace rather than human strength.